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Us 6, Icahn 4, S&p 4, Janet Yellen 4, Fda 3, Oscar 3, Yellen 3, Tesla 2, Bitcoin 2, Ukraine 2, California 2, Chuck 2, Angela 1, Freddie 1, Freddie Mac 1, Soley 1, Orson Welle 1, Gm 1, Fannie Mae 1, Nhtsa 1,
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  KICU    First Business  

    February 28, 2014
    4:00 - 4:31am PST  

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the s&p 500 fires up!. the index finally made the leap above a critical level. in today's cover story.... nominees at this year's oscars are taking home an epic gift bag. and why that goody for a small business. plus... are employees more stressed out than ever... and in traders unplugged....is tesla about to wipe out...why wall street thinks so.... first business starts now. you're watching first business: financial news, analysis, and today's investment ideas. good morning! it's friday february 28th. i'm angela miles. in today's first look: what a way to end the month. after waffling around for days--the s&p finally closed above 18-50 last night, resting at 18-54 for a new record high. the dow rallied 75 points, the nasdaq 27. gold jumped $3 dollars and oil slide 36 cents. some of the
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market action had to do with calming comments about the economy from new fed chair janet yellen on capitol hill thursday. the wall street journal reports-- quiznos is preparing to file for bankruptcy in the next few weeks. the paper says its due to declining sandwich sales. and, jos a bank rejects a $63.50 per share offer from men's wearhouse but is willing to consider higher bid. trader chris gersch of altimus capital joins us on this friday morning. happy friday to you chris. >>happy friday. >>we definitely saw those yields move on yellen yesterday. what do you anticipate for today? >>i think that we are going to see continued yield movement. what is really strange about those yellen comments came outyou had yield to the downside when in the equity market we closed at all time highs yesterday. that's sort of a conundrum. you don't expect
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yields to fall with all time highs. but i really think that one going lower and one going higher will not survive through the trading day today. look for yields to either go down and the market to follow or vice versa. >>we have a gdp number coming out today. how is the market setting up for that reaction? >>the market is setting up to the high side. the s&p futures after the close of the equity market there was a lot of market on close to the upsideit closed on its highs 15 minutes after in the futures market. that tells me that a lot of traders are going long. and if anything to the shortside, traders are really going thin because everything seems to be on the buy side. gdp if it's revised up will get the s&p to go much farther. >>thank you chris. >>thank you. chuck coppola is here with more-----on what fed chair janet yellen has to say about the economy-- good morning chuck.
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angie -- the fed is keeping tabs on the weather. at a hearing of the senate banking committee, federal reserve chair janet yellen says the winter cold has taken a toll on the economy. "since my appearance before the house committee a number of data releases have pointed to softer spending than many analysts had expected. part of that softness may reflect adverse weather conditions, but at this point it's difficult to discern exactly how much. " when asked about the next round of tapering, yellen says she's looking at qualitative data, not soley the unemployment rate, to determine the next steps. she did stress concern about american's dealing with long- term unemployment. and expects the unemployment rate will continue to decline its longer- run sustainable level. also that that inflation will move toward 2 percent in the years ahead. yellon touched briefly on political tensions in the ukraine, stating that it does not pose substaintial risk to the u.s. economy. mortgage giant freddie mac is racking up its 9th profitbale quarter in a row. the agency's
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profits doubled this time around to $4.5 billion dollars as home prices rose and freddie had to set aside less money to cover losses on mortgages. during the finanicial crisis-- the government spent $187 billion bailing out freddie mac and fannie mae. it's estimated by march the two will have paid back at least $192 billion to taxpayers. now on to "retail" earnings...gap addressed a challenging christmas, as it says revenue and profits both took a hit in the fourth quarter. best buy returned to a profit. still, the electronics chain reportedly plans to cut 2,000 jobs following a disappointing holiday season. shares traded in a wide range thursday ending the session-- down.. at sears...the christmas season was deemed "tough to terrible"that resulted in a 14% sales plunge. and jc-penney stock shot up a whopping 25% yesterday, as turnaround efforts.... appear to be working! u-s regulators are probing recall reaction time of general motors after an ignitian issue
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was linked to 13 deaths. the national highway safety administration wants to know whether gm recalled autos quickly enough after the ignition switch defect was detected. the defect caused ignition switches in more than 1.6 million cars to turn engines off abruptly. gm faces a potential fine of $35 million if it failed to notify the nhtsa within 5 days of the recall. subway recently banned a "shoe rubber" chemical from its breads. now, consumer groups contend that the same chemical is in nearly 500 foods. the chemical is azo-di-carbonamide. it's used as a bleaching agent in some breads, pizzas and pastries. and, is approved by the fda. however consumer groups are pushing for a ban.they contend that it can cause respiratory issues. the "fine print" on nutrition labels could soon become easier to digest. sweeping changes to labels are being introduced by the fda. such as: simplifying calorie counts, and making it easier to spot added sugar and nutrients in products. fda commissioner dr margaret
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hamburg says nutrition information has not gone through a significant change in 2 decades. "we think it really needs to be updated to reflect new scientific information about important aspects of nutrition and health, and also about realities about what people are eating in terms of serving size." the label makeover is backed by the white house. "too often it's nearly impossible to get the most basic facts about the food we buy for our famillies." once a blueprint is approved, the food industry has two years to implement the new look. mcdonald's is giving customers an opportunity to build their own burgers. it's just a test in california for now. but the burger chain is offering customers tablets so they can tap out the bun, patty, cheese and other toppings they want. mcdonald's executives call it a huge driver. the chain is also stuck with a glut of chicken wings that did not sell well for a dollar. so the price is being clipped to around 60- cents.
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a major investor is pushing for a split at pepsi. nelson peltz wants the company to divide its snack business, which includes lays and doritos chips, from its beverage business. he says he will approach top shareholders with his plan in coming weeks. peltz says the growing snack business would boost sales, while the stable beverage side would bring steady profits. the company says the plan does not make sense, and would reduce relevance to customers. it's getting ugly between hedge fund mogul carl icahn and e-bay. icahn sent yet another letter to e-bay shareholders accusing two board members of "pre-empting" e-bay's i-p-o of skype. the board member bought skype with an investor group from e-bay in 2009 than flipped skype to microsoft. reportedly making four billion dollars in the deal. icahn says the profit came at the expense of e-bay shareholders. icahn is pushing ebay to spin-off paypal. in a memo- the founder calls icahn's attacks false and misleading. the ceo of exxon mobile is speaking out about fracking for oil near his neighborhood. rex tillerson tells the wall street
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journal he joined a lawsuit that would block construction of a 160-foot water tower that supports a fracking project near the dallas suburb of bartonville. he claim's the project would lead to traffic with heavy trucks, create a noisy nuisance and the tower would be an eyesore. but says he's not against the actual fracking. after a rough week, bitcoin might be facing a full-out ban. west virgina senator joe manchin is calling for a complete ban of the digital currency. he sent a letter to treasury secretary jack lew and fed chair janet yellen, saying the currency is unregulated and allows illegal activity. earlier in the week, bitcoin's exchange, mt. gox, went offline after a series of cyber-attacks. customers lost about $350 million in bitcoins, with no solution for recovery. identity theft tops the list of pricey consumer complaints. consumers lost $1.6 billion to various types of fraud in 2013, according to the federal trade commission. also making the list along with id theft.. credit card theft, false debt
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collection notices, payday loan charges, government imposter debt claims, and unexpected telephone and mobile charges. in our cover story, "everybody wins at the oscars." that the name of the gift bags that last year, were filled with 48-thousand dollars' worth of stuff-we-all-get---swag for short. and for the companies that provide the goodies--- seeking good publicity---it's in the bag. the storefront of terry's toffee's and shelves inside are all dressed up for the oscars. this marks the tenth year, the little shop on chicago's west side has produced sweet swag--- goodies for oscar's gift bags. "it was a leap. trusting my gut. i called the president of the academy and spoke to his assistant and she said, 'send some out.' they love us and we've been in every year now." before you could say "the oscar goes to," a wall of stars with
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a sweet tooths began sending in orders. "it's given us national and international exposure." "i certainly couldn't put a dollar figure on it, but i would say it // keeps us in the consciousness of people." and each year, they've tried to top themselves. "one year, we had a hand-painted box--very elaborate. each one cost $650 bucks." in 2006, swag bags topped a hundred thousand dollars, including a week-long hawaiian vacation. the i-r-s called it "income." "george clooney, that year, gave his to the red cross to auction to do something good. this year, oscar swag includes trips to vegas and japan. and hollywood necessities--- cosmetic surgery and hair transplants---and grandma frances mccoll's toffee---also in the green room for presenters. now, if her grandson, terry opalek could just get a ticket in.
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"we've been offered to be seat- fillers this year but couldn't get away. but we may do it next year." "we'll of course, have toffee in our pockets so that might get us in the door." there is a limit to oscar swag extravagence---terry's toffees is sending 120-boxes. thanks chuck. a piece of hollywood could be yours: the script for iconic film "citizen kane" is for sale. orson welle'' "working draft" complete with his personal notes, is up for grabs for 25 thousand to to $33 thousand dollars. it's part of a sotheby's sale of more than a thousand items owned by the late stanley seeger, a wealthy collector of historical oddities. also included in the sale: 100- year old dinosaur eggs and a cocktail shaker once owned by al capone. still to come: why earnings from that 3-d company could clear up what's
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ahead for the stock. and...our two best supporting actors duke it out for oscar gold in traders unplugged! plus... why working americans are taking job stress home at night.. bill moller joins us after the break!
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it's a fact. stress in the workplace is rising. several employee support organizations report this. and the negative consequence are many both in the workplace and the home. bernie dyme is president and ceo of the workplace resources company, perspectives - and you're seeing this too. >>in a big way. over a million peopleu.s. employees are really having problems everyday because of stress related issues. >>where does this come from? the
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productivity demands on the average employee are increasing? >>i think the economy has had a huge impact on this kind of phenomenon. that happened back in 2008 and it's not getting better quick. >>well what are the consequences when an employee is feeling stressed? >>lost work hours. lost productivitya lot of problems at home that come into the workplace. and some potential for some really devastating things to the organization. >>do managers understand this? >>i think managers are going through the same kind of stress that employees are. so i think they kind of hunker down and focus on where they need to go and don't necessarily see what its costing their employees. >>so what are the solutions to this? both from what employees should do on their own and what management should be thinking about. >>there's a number of things that can happen. number one i think it's important for organizations to be transparent. because i think stress is exacerbated by the fact that we are uncertain about the future. so letting people kknow how the organization is
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doing is helpful. >>rather than have rumors around the water cooler spread fear. >>that's exactly right. because if you don't know something, it's always gonna be the worst thing you think about. >>alright2? >>number 2 is providing stress management workshops. that's really helpfulteaching people self care. teaching them what to do to take care of themselves. number 3 i think is to provide some fun activities. we lose track of that and when we're having bad times, we don't have fun anymore. i think if management and the organization get behind that it makes people feel a lot better. and the last thing is to provide counseling services. make it okay for people to talk about it. things like financial awareness are great things and if you get people in to talk about those thingshave your 401k vendor come and talk. have your eap do trainings or seminars. all of those things make a big difference. >>bernie dyme from perspectives thanks so much. >>thank you. thanks bill! still ahead-- the company that has investors wondering whether the stock will press out more gains...and next in traders unplugged is tesla headed for $65 dollars or $265 dollars.we'll be right back.
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ready to kick this show into high gear-- alan knuckman and scott shellady join us from the floor of cme group for traders unplugged. good morning guys and here's topic number 1... bonkers banker? - bac analyst reaffirms tesla target at $65 as the stock drives toward 300. is he going in the right direction? alan: that is an example of not being able to take a loss.he was wrong, they asked him again over the last couple of days if he still believed in $65. the stock's at $260all time forever highs. they've revolutionized not only cars but a number of other things. i think tesla is not where i'm looking to make the money. bank of americawhere
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that guy should not work anymorelooking for that stock to go up another 15%. scott: alan prefers the bank of the ukraine. revolutionary is the word alan usedi'll say it's a pioneer stock alan: that car goes faster than the bmw m5. scott: i'm about to agree with him. my definition of pioneer is a guy with a coonskin cap, facedown in a puddle of water with an arrow in his back. so, i'm not gonna say 65 but i'm agreeing with him that it's gonna go lower. alan: say that you're wrong. if you were wrong and you picked $65, say you're wrong. that's all i ask. angie: topic number twobitcoin bites. the people who make the physical currency of the bitcoin are leaving the market. what does this suggest about these bitcoin exchanges? scott: i'll jump in here because i can't stand myself but this is something i'm sure alan's gonna like because it's basically gold for the intellectually elite. or at least those who think they are. so they're gonna do something that nobody else really understands and pretend like it's this really good, smart idea. i think it's a massive sell. i can't stand it. i think it's a fad and it will be gone in 2 years. alan: bitcoin peaked at $1100. it was down to $500. but let's put this in perspective. any investment that goes from $100it was at $100 in november of 2012. it's gone from $100 up to
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$1100. it obviously has to come back. i don't care what you're trading. especially when you're dealing with the ether of nothingness. you don't want to buy something that's gone up tenfold. that's dumb. angie: topic number threeman versus monster. which stock is the better buy as the labor market improves? is it manpower or monster? alan: well, manpower is the placement firm. monster is the job listing firm. i like monster. monster has gone from $48you gotta remember this was a $26 stock not so long ago. i think that the economy is turning around. there will be more job listings andthat will help monster. and it's all on the internet these days. the internet is not a fad. scott: let me jump in now pinocchio. what i think we've got in front of us is a jobless market so i don't think either one of them are a buy. i think the economy is in a bad state and the 10 year's telling us that so alan: the 10 year now is going downyou're worried about that? before it was going up and you were worried about that. so which one is it goldilocks? which one is it? scott: it's gonna go to 2 and a quarter. alan: is it too hot or too cold or just right? scott: you're right. everything is fantastic. 50 million people on food stamps. this is my
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america. angie: on to your bonus round questionhow much does it cost to make an oscar? is ita)$400, b)$600, or c)$900? alan: are the labor unions involved? shipping? the price of metalthere's a lot of variables here. i'm gonna say $600. scott: i'll go $300. angie: it's actually $900 but i will give it to you because the price is always fluctuating because it's based on gold of course. great job. first business continues right after this.
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james ramelli of keene on the market dot com joins us for some chart talk in 3dwell almost. we're talking about a 3d stock. good morning to you. >>good morning. >>what do you think about the stock's performance over the past few sessions? >>it's been an interesting couple of sessions for triple d and it's been a very interesting year for them. the stock has gotten really beat up
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all through january and gapped lower to around $55 in early february. that's where it bottomed out. it's actually rallied pretty hard off of that level. it closed on thursday around $75. on average the stock is a strong performer on earnings. it's rallied 5 out of the past 8 quarters with about a 7% move on average. the options market for friday's close is implying around $5 higher which is right around that historical average. i think that the chart is setting up well here for a long. i will be looking to play this to the long side. the momentum in recent months has been to the downside but in recent sessions has been to the upside. we see the momentum turn and i think this is a good play for me to get long going into earnings. with a $5 move implied i'm looking for an upside target of around $80 and i think that the stock could very easily test that region as it is near the old 52 week high. >>do you think because this 3d printing is so cutting edge and still there are a lot of questions about how well it will integrate itself into manufacturing. is that causing volatility in the stock?
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>>absolutely because it doesn't really make the stock an earnings story right? we can't really trade this based off of ford earnings. we can't really trade this based off of pe. it's all about future and potential earnings. that could make it kind of tricky for the market to decide on a valuation. as we can see the stock has been all over the place this year. it traded as low as 55 bucks and came all the way back around to 75. i think if they come out with good earnings we should see a continuation of that rally off that $55 level that was made in early february and i think the stock could head higher. >>thank you for that james. have a good day. that's the end of our show for today. coming up next week-- rain relief. how wine growers are dealing with the california drought...and will the recent down pour be enough to keep business from going sour. we hope you will join. from all of us at first business...have a wonderful weekend.
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